Demand for styrene butadiene rubber (SBR) in south-east Asia is expected to pick up amid tight supply and rising raw material costs as some economies reopen.
In recent months, the outbreak has led to a tightening of supplies at a number of styrene butadiene rubber plants in Asia. As demand has slowly picked up, some suppliers have raised their prices in recent days. Non-oil grade 1502 styrene butadiene rubber price quoted usd 950~1050 / ton (CFR, Southeast Asia). As of June 24, the price of non-oil grade 1502 styrene butadiene rubber ranged from us $880 to US $950 / ton (CFR, SE Asia), according to ICIS data.
"Our spot supply is limited and demand is picking up in Malaysia and Vietnam," said one leading styrene butadiene rubber producer. In addition, the cost of styrene monomer (SM) is also on the rise, which is also a factor in the price increase.
Since late April, styrene monomer prices have risen about 15 percent and are currently trading at $670 to $685 a ton (CFR, China), according to ICIS data. Positive data on factory activity in China boosted sentiment. China's general manufacturing purchasing Managers' index (PMI) rose from 50.7 in May to 51.2 in June. China's official manufacturing PMI rose to 50.9 in June from 50.6 in May, according to official data, suggesting factory activity is expanding at a faster pace.